Americans Are Spending More on Rent and There’s No Relief in Sight

Posted On Tue, September 22, 2015 By

Posted On Tue, September 22, 2015 By In affordable housing, real estate trends

Complaining about high rents is nothing new for New Yorkers, but we’re actually not alone in our misery. According to a new study from Harvard University’s Joint Center for Housing Studies and Enterprise Community Partners, reported in the Washington Post, “nearly 15 million [U.S.] households could be ‘severely cost-burdened’ by 2025, meaning they’ll be spending more than half their money on housing.” Today, that statistic applies to 11.2 million households (one in four households), which increased by three million since 2012.

The staggering rise can be attributed to “temporary” factors such as low home-ownership rates after the housing bubble burst, followed by a construction rate that couldn’t keep up with population growth thanks to the recession, which also put a strain on families’ budgets. But the Wall Street Journal also points to long-term population trends. For one, “Hispanics tend to be disproportionately renters and are more likely to pay a large share of their incomes in rent, thus putting more pressure on the existing supply of affordable rental housing.” Snake People are the other group challenging the rental supply–”Many of those young adults entered the job market during and after the recession, meaning many were unemployed or underemployed for crucial early years of their careers, and are more likely to struggle to afford housing.”

renter income vs. housing cost, rental chart, growing U.S. rents, affordable housing
Chart via Enterprise/Harvard JCHS

Rents have been growing faster than incomes for the past 15 years, but even if this were reversed, the study finds that it would still take well over a decade to see the rental market significantly improve.

[Via WP and WSJ]

RELATED:

Tags :

  • MaximumOvertroll

    My wife and I were priced out of our apartment which was the cheapest in town at the time and was (and still is) run by a slum lord who refused to fix the backed up plumbing (on the second floor, the first floor was uninhabitable as it was constantly under sewage). The excuse has been that theres so many oil wells operating around town that the demand is driving the price anual increases, except for the fact tha the wells have been steadily closing and their operating companies going out of business and leaving town yet the prices keep going up and up. We live in my wifes childhood bedroom at my inlaws house. We keep saving to try and move out but every time it looks like we’ll be able to afford to move out, the prices go up again and we’re back to square one.

MOST RECENT ARTICLES

  • Driving Barron Trump to school won’t leave NYC in total traffic chaos

    Driving Barron Trump to school won’t leave NYC in total traffic chaos

    It appears the Secret Service and NYPD are indeed taking measures to minimize the disruption caused by Melania and Barron staying ...
  • Map: Here’s where you can afford to live in NYC in 2018

    Map: Here’s where you can afford to live in NYC in 2018

    For New York home buyers, a lot can change in a year. A neighborhood that was considered affordable can all ...
  • A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    The most interesting thing about Soho lofts is often the people who inhabit them; all begin as hangar-sized white spaces with ...
  • Get a free Shake Shack burger via their new app

    Get a free Shake Shack burger via their new app

    Even when all hope seems lost—there’s nothing like a free cheeseburger to raise morale. Shake Shack is celebrating the launch ...
  • Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Penn Station’s archaic-yet-iconic Amtrak departure board is officially coming down today to make way for a series of updated, smaller ...
  • De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    City Water Tunnel No. 3, one of the largest capital projects in the city’s history; Images: NYC DEP Mayor Bill ...
  • Central Park South co-op of the late Doris Roberts lists for $3.3M

    Central Park South co-op of the late Doris Roberts lists for $3.3M

    Emmy-winning actress and animal-rights activist Doris Roberts (you probably know her best as Marie Barone from “Everybody Loves Raymond”) passed away ...
  • The Horse Plague of 1872 brought New York City to a screeching halt

    The Horse Plague of 1872 brought New York City to a screeching halt

    In the fall of 1872, an unfortunate horse plague swept across New York City after making its way through Toronto, ...
  • There are more skyscrapers in NYC than in the next 10 cities combined

    There are more skyscrapers in NYC than in the next 10 cities combined

    Given our growing obsession with skyscrapers–and our growing collection of them–we’re pleased to find that New York City has more skyscrapers than ...
  • Oscar-winning director Steven Soderbergh sells stylish Chelsea pad for $4.8M

    Oscar-winning director Steven Soderbergh sells stylish Chelsea pad for $4.8M

    All the way back in August 2014, 6sqft featured the $5 million listing for this stylish co-op at 147 West 22nd ...
  • Socialite Georgette Mosbacher lists luxurious full-floor, Fifth Avenue co-op for $29.5M

    Socialite Georgette Mosbacher lists luxurious full-floor, Fifth Avenue co-op for $29.5M

    This grand Fifth Avenue co-op belongs to the socialite and political fundraiser Georgette Mosbacher, who has hosted everyone from King ...
  • SPACE T2: A 1959 hunting shack transformed into an off-grid studio by Stephen Holl

    SPACE T2: A 1959 hunting shack transformed into an off-grid studio by Stephen Holl

    Space T2 is a minimal artist studio located in Rhinebeck, NY. Stephen Holl Architects built the off-grid cabin using what remained of ...

SIGN UP FOR OUR NEWSLETTERS

Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.